Texas Asks Court to Halt Kenvue Tylenol Marketing, Dividend

By and Redd Brown | November 7, 2025

Texas officials have asked a state court judge to temporarily block Kenvue Inc. from marketing Tylenol as safe for pregnant women, and from issuing a dividend, escalating the company’s legal woes just days after announcing a major merger with Kimberly-Clark Corp.

The request for a temporary restraining order is the latest step in Texas Attorney General Ken Paxton’s effort to hold the Tylenol maker and its former parent company, Johnson & Johnson, accountable for what he alleges was a years-long campaign to conceal links of acetaminophen — the active ingredient in Tylenol — to autism and other disorders for children if mothers take it during pregnancy.

There is no clear connection between the use of Tylenol during pregnancy and adverse neurobehavioral or developmental outcomes such as autism. Kenvue has pushed back against this link, saying the claims are unsupported by scientific evidence. Untreated fevers and pain are known risks during pregnancy.

“We are taking immediate legal action to stop the plaintiffs’ attorneys representing the State of Texas from continuing to drive these reckless and scientifically unsound theories,” Kenvue said in a statement. “These politically and financially motivated actions will have a detrimental impact on public health for our consumers in this state, particularly women and children.”

Kimberly-Clark said this week it would buy Kenvue for roughly $40 billion. The companies say they carefully considered the potential risk of lawsuits related to Tylenol before moving forward with the deal, though analysts warned investors could be wary of the acquisition given the mounting legal issues.

Kimberly-Clark didn’t immediately respond to a request for comment.

In Texas’ motion, Paxton argued that any dividends paid by Kenvue would violate a state law that prohibits people and businesses from moving assets in order to avoid paying debts or fulfilling other obligations.

“It would have the effect of taking corporate funds that will be needed to pay creditors — including the State of Texas itself — and giving those funds to Kenvue’s shareholders, who are not parties to this suit, and from whom the State would never be able to recover,” the suit says.

Paxton’s office asked for a restraining order lasting at least 14 days while it seeks a longer-term block.

President Donald Trump ignited scrutiny of Tylenol in September when he said pregnant women shouldn’t take it, claiming it potentially causes autism. Texas then sued Kenvue and Johnson & Johnson, alleging that the companies hid the autism risks.

Photo: Kenvue Inc. Tylenol brand pain reliever medication arranged in New York, US, on Monday, Nov. 3, 2025. Kimberly-Clark Corp. agreed to buy Kenvue Inc. for roughly $40 billion, snapping up the embattled Tylenol maker’s storied brands in a gamble that would vault the Kleenex producer into consumer health’s top tier. Photographer: Michael Nagle/Bloomberg

Topics Texas

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